Introduction
Growing concern about global warming has led to increased environmental awareness through the responsible use of finite resources in technological innovation. Lithium, the “white gold” of the 20th century, is now emerging as a critical element in enabling sustainable energy solutions.
It is predicted that 230 million electric cars, buses, vans and heavy trucks will be on the road by 2030. In 2019, the number of registered electric vehicles (EVs) increased from 5.6 million to 7.9 million globally, with significant growth in Europe and the United States.(see Dorn and Peyré 2020, 68) According to the International Energy Agency (IEA), an electric vehicle requires more than six times the mineral inputs of an internal combustion vehicle. According to the IEA, an electric vehicle requires more than six times the mineral inputs of an internal combustion vehicle. But EVs are just one type of product on the list. Lithium carbonate is the main ingredient in lithium-ion batteries found in cell phones, hybrid cars, electric bicycles and even large grid-scale storage batteries, as well as in other industries such as glass and ceramics manufacturing, metallurgy and pharmaceuticals.
The U.S. used to rely on other countries such as Australia or the Lithium Triangle (Argentina, Chile and Bolivia) for lithium supplies. Silver Peak, located in western Nevada, is currently the only lithium production site in the United States.(see. Stevens n.d.)
In the next figure we can observe the distribution of total global lithium production among the main lithium producing countries until 2020:
Credit: Visual Capitalist
The price of lithium has been on the rise as the energy and transportation sectors look to replace fossil fuels. Demand for the resource continues to outstrip supply. Although lithium is not a scarce resource, it’s a slow-moving industry; it can take about seven years to get a new mine up and running. These projects are capital intensive and require permits and environmental reviews.
Analysis of the resource production stages is often limited, as most of the existing scientific literature and news approaches the issue of lithium sustainability from a battery perspective. The role of metals and minerals production can be controversial, as it can be associated with negative environmental and social impacts. Often perceived as negative due to past project impacts on waste management, water scarcity, pollution and others. Some of the damaging effects to the ecosystem include transportation of the product, which requires the development of linear features such as electrical transmission lines, power lines and roads, disturbance of surface waterfowl, and disruption of habitat for terrestrial animals. Other effects of climate change include the nature of precipitation. Temperature is projected to rise steadily due to a decrease in precipitation.
On the opposite side, lithium is considered a key technological component for reducing air pollution in cities and creating lifestyles with low carbon footprints. For lithium-exporting countries, especially those in the lithium triangle, this creates economic opportunities and raises expectations for economic growth and improved living conditions for local groups. They have a positive impact on local communities by providing opportunities to improve the quality of life through program that improve access to health, education, business development, infrastructure and employment.(see. Petavratzi et al. 2022, 687) Employment opportunities play a central role. Although lithium mining is not particularly labor-intensive, some companies offer job training to help the local population become qualified to work in their operations.
Credit: Paz Olivares Droguett for NPR
Goal
Given the growing industry and appeal of this resource, it is important to understand how the industry has evolved over the past few years from a variety of perspectives. This includes evaluating the major producers, key companies in the market, resource performance, and news.
The goal of this project is to analyze the most recent data collected from various aspects of the industry and find insights and future points of improvement. This analysis is necessary to conduct a study of environmental impacts and actions that can improve the quality of life from various perspectives.
Questions:
How has the distribution of the total global lithium production among the main lithium producing countries evolved over the past two decades?
How have the main lithium related companies performed in the stocks market over the past two decades and how do they compare between each other?
How does the lithium price correlate with the complementary resources used to produce lithium batteries?
Can we use machine learning to predict sentiment analysis in text data and recognize categories?
Do lithium related companies have a similar financial performance and is there a clear relationship between them? How did COVID affect these companies and relationships?
Does the financial data of the main lithium related companies differentiate enough to distinct them?
Is there a pattern in the electrical vehicles characteristics in order to predict where they were manufactured?
How has public sentiment and opinion evolved regarding the increasing demand for lithium, and can text analysis reveal whether there is a pattern of sentiment by source of data?
Are there specific terminologies that drive the sentiment of publications?
What conclusions can we draw based on the industry analysis and are there specific concerns arising?
References: